Business interruption insurance

In case a crisis hits your factory premises, and you can’t operate.

What’s typically covered by business interruption insurance?

• lost profit, revenue, or rent following damage to your premises
• increases in the cost of working

For example:

• burst pipes in your factory premises cause flooding, and you’re forced to stop production
• a tree falls through some of your older factory roofing, making half of your premises unsafe for work

What isn’t covered?

• collapse or cracking of buildings
• vehicles required to be licensed for road use, including accessories
• disruption caused by changes in the water table, subsidence, ground heave, or landslip (unless specifically agreed in your policy wording)

Other exclusions apply – read the policy documents carefully to be clear on what is and isn’t covered.

Loss of licence insurance

In case your factory premises licence is removed.

What’s typically covered by loss of licence insurance?

• forfeiture, suspension, or withdrawal of the premises licence
• resulting loss of gross income
• costs incurred by you (within reason), while trying to maintain your gross income
• depreciation in value of the premises, if you can’t get a licence

What isn’t covered?

Loss of licence resulting from:

• any alterations to the premises made without the appropriate authority’s consent
• failure to comply with any direction or requirement of the licensing or other authority
• any town or country planning scheme
• your own misconduct, connivance, neglect or omission, or failure to take necessary steps to keep the licence in force

Equipment breakdown insurance

In case there’s a problem with your equipment.

What’s typically covered by equipment breakdown insurance?

• accidents and breakdowns involving equipment covered under the property damage section of your policy
• insured items typically covered up to £5 million

What isn’t covered?

• loss or damage caused by a pneumatic or gas pressure test of any boiler or pressure vessel, or an insulation breakdown test on electrical equipment
• damage which you can recover under your maintenance agreement, warranty or guarantee
• biomass, biogas and hydroelectric installations

Other exclusions apply – read the policy documents carefully to be clear on what is and isn’t covered.

Some insurers won’t cover certain items, unless they’re specifically agreed in your policy (for example, your manufacturing equipment). You’ll usually need to select property damage insurance and/or specified all risks insurance when building your policy, to get the right cover for your equipment and property.

Terrorism insurance

In case your factory premises are hit by an act of terrorism.

What’s typically covered by terrorism insurance?

• acts of terrorism within England, Wales, Scotland, and the Channel Tunnel, up to the frontier with the Republic of France
• property damage, business interruption, specified all risks, money and goods in transit, where insured by your policy

Exclusions and limitations apply to this cover – read the policy documents carefully to be clear on what is and isn’t covered.

Employers’ liability insurance

In case anyone gets ill or injured while working for your business.

What’s typically covered by employers’ liability insurance?

Claims against your business for:

• an injury or illness that happens as a result of working for you (including temps and casual workers)

For example:

• an employee badly sprains their ankle while working in your factory, and raises a claim against you
• a former employee is diagnosed with repetitive strain injury in her hands and wrists, and raises a claim

Employers’ liability insurance is required by law if you have people working for you. Without it, you could be fined up to £2,500 a day for each employee.

Public liability insurance

In case your business causes an injury, illness, or property damage.

What’s typically covered by public liability insurance?

Claims against your business for:

• damage to someone’s property, caused by your factory activities
• an injury or illness caused by your business activities or products
• accidental damage or injuries caused by your employees

For example:

• one of your clients visits the factory and becomes entangled in a piece of machinery during a spot test, injuring their hand and arm
• a forklift on your premises causes serious injury to an external training provider, and they decide to sue

If you do employ anyone, you’re usually required by law to have employers’ liability insurance too.

Product liability insurance

In case your products cause an injury or damage.

What’s typically covered by product liability insurance?

• your legal liability for injuries or damage caused by your products, up to the agreed limit
• associated costs and expenses

Exclusions and limitations apply to this cover – read the policy documents carefully to be clear on what is and isn’t covered.

Commercial legal expenses insurance

In case you’re faced with legal costs in connection with your factory.

What’s typically covered by legal expenses insurance?

• legal costs that you’re responsible for, within your business
• property damage, nuisance, or trespass – specifically, the associated legal claims and compensation payouts
• tax and compliance disputes and investigations you need help with
• access to expert advice – including a tax advice phone line, confidential 24/7 legal phone line, and crisis support to help you protect your professional reputation

For example:

• HMRC select you for a randomised tax inspection, and you need to hire a dedicated staff member
• three employees claim they didn’t receive adequate training before using your new forklift, and sue for injuries – you need to pay for associated legal costs

Cyber liability insurance

In case a cyber risk could damage your business and reputation.

What’s typically covered by cyber liability insurance?

• claims against you for data breach, virus transmission, loss of reputation, or breach of intellectual property rights
• data-breach expense, including professional legal, forensic, IT, PR, and crisis management services
• computer system damage costs and lost income
• cyber crime committed against you, such as telephone hacking or data and money theft

Your insurer may require you to:

• back up original data at least every seven days
• protect your computer system with a virus protection software package which is licensed to you, paid for and updated every seven days
• put appropriate procedures in place for disposing of and destroying hardware and hard copy files in order to protect data

Other exclusions apply – read the policy documents carefully to be clear on what is and isn’t covered.